Have you ever wondered how the millionaires in this country built their wealth? After spending 10 years in the investment industry as an advisor, contrary to popular belief the richest people in America DID NOT accumulate their wealth by investing in the stock market.

Considering the amount of media coverage that the stock market gets on a daily basis and the billions spent on advertising by Wall Street firms, it’s not at all surprising if you’ve come away with the impression you can start out with very little money and strike it rich by investing it in the market. Unfortunately this is largely a fabrication.

What Are They Not Telling You

1. Small investors are not wanted by Wall Street and the brokerage firms. It was never designed with the small investor in mind.
2. In an article in Investment News on 02/21/2006; it states that last year Merrill Lynch & Co and Morgan Stanley, both of New York, stopped paying brokers for any kind of business done in households with investible assets of less than $50,000.
3. If you don’t have at least 100k to invest, investment firms, stock brokers, and financial advisors will not take you seriously as a client.
4. The investments available to the small investor are limited to just a few choices. As a small investor you will never have access to the types of products available to the rich. You have to be what’s called in the industry an accredited investor, which means your net worth, has to be at least one million dollars to have access to the alternative investments available.
5. Why don’t the rich go to the market to build their wealth? It Ain’t Predictable. Simply put, it’s not possible to predict the stock market. You can’t predict the market. I can’t predict it. No one can, not even the so called experts. Anyone who tells you otherwise is a liar.
6. So if stock brokers, financial advisors, financial planners, etc… know where the rich made their wealth in this country, why aren’t they telling you?

Why Aren’t They Telling You

1. Money: 90% of the brokers in this country are commission base
2. Greed: The number one motivating factor in the investment industry.
3. Consider this: Wall Street controls over $8 trillion in retirement money through the mutual fund industry. And for every one percent the money managers charge they are able to stick another $8 billion dollars in their pockets - the 8 billion is what the one percent fee adds up to.
4. Stock brokers, financial advisors, financial planners etc…, are limited to the investments and services available to them through the firms they represent.
5. If a broker can’t get paid a commission on an investment, he/she will not recommend it to you.

The great thing is to build your wealth you don’t need the stock market stock broker, financial advisor, or financial planner, because 70% of the millionaires in this country did not need them to build their wealth.

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This entry was posted on Sunday, December 31st, 2006 at 9:20 pm and is filed under Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.